Here's How Much It Costs To Mine An Ounce Of Gold

One popular case being made is that high mining costs ultimately create a floor for prices. In theory, if prices fall below cost, then miners will stop mining it and supply will quickly evaporate. The marginal buyers will then scramble for whatever’s left, causing prices to surge.

Obviously, things are a bit more complicated.

“Gold mining costs are not uniform,” noted UBS’s Art Cashin. “They vary from mine to mine and from level to level within each mine.”